Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

On inherited property, expenses including repairs were made…

Customer Question
On inherited property, expenses including...
On inherited property, expenses including repairs were made on inherited property up to 18 months prior to sale. Is there a time limitation as to what expenses you can take?
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
2/29/2016
Tax Professional: emc011075, Tax adviser replied 2 years ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,976
Experience: IRS licensed Enrolled Agent and tax instructor
Verified

Hi. My name is ***** ***** I will be happy to help you.

The expenses are not deducted, they are added to the basis of the property when calculating capital gains. There's no time limit.

To calculate your capital gains you will add the expenses, plus expenses of the sale to the fair market value of the property on day inheritance and you deduct it from the sales price. If the result is a loss and the property was used for personal purposes (not business or investment), you will not be able to claim the losses but you will still have to claim the capital gains, if any.

Ask Your Own Tax Question
Customer reply replied 2 years ago
Thank you - can I capitalize all of the expenses for the entire period (18 months)
Tax Professional: emc011075, Tax adviser replied 2 years ago

Not exactly. When you sell the property you will have to figure out capital gain or loss. You will use your expenses to reduce the sales price. There's no time limit how far back you can go to add the cost of improvements. If you owned the property for 10 years, than you can add cost of improvements for 10 year.

Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 2 years ago

The expenses are not deducted or capitalized/depreciated separately. The expenses are used to reduce your capital gains on the sale of the property.

Ask Your Own Tax Question
Tax Professional: emc011075, Tax adviser replied 2 years ago

Any questions? Is there anything else I can help you with today?

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask emc011075 Your Own Question
emc011075
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,976
3,976 Satisfied Customers
Experience: IRS licensed Enrolled Agent and tax instructor

emc011075 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
We inherited a row house in dreadful shape in Georgia
We inherited a row house in dreadful shape in Georgia (former USSR). We plan to use it as a vacation home (not rental at least yet). Can we write off expenses for travel and per diem while settling th… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,602 satisfied customers
I'm trying to fill out a 4797 form for the sale of rental
I'm trying to fill out a 4797 form for the sale of rental property last year … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I sold oil royalty rights in 2016 that I inherited from my
I sold oil royalty rights in 2016 that I inherited from my mother's death in 2015. How would that be treated for tax purposes? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I got an extention this year but now I have run into a few
I got an extention this year but now I have run into a few questions. I am 73 years old, I still work part time but my taxes have been pretty simple to do myself. However, last December I sold my hous… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
I have a house (single family dwelling) that I converted to
I have a house (single family dwelling) that I converted to a rental property. I am now in the process of selling the property. Extensive maintenance was needed, as well as upgrades in order to offer … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
848 satisfied customers
I inherited a house from my parents in 2009. We sold the property
I inherited a house from my parents in 2009. We sold the property in 2012. My parents made a lot of improvements and upgrades to the house in the 1960's. Can I deduct the cost of the improvements from… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
Rental expense deductibility before its a rental: My wife
Rental expense deductibility before it's a rental: My wife inherited a house and in 2010 we decided to rent it out. The house was dilapidated and needed a lot of repair. My wife decided to make those … read more
winktax
winktax
Enrolled Agent
Master's Degree
349 satisfied customers
My husband and I have recently sold our cottage in Michigan.
My husband and I have recently sold our cottage in Michigan. We inherited this property from my father and made major improvements/remodeling over the past 20 years. How do we figure our tax liablilit… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How to list cost of repairs to get a tax deduction?
How do I list the cost of repairs to a house to prepare it for a land lease sale in order to get a tax deduction?… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
My siblings and I inherited the family home after my mother
My siblings and I inherited the family home after my mother passed away (4 years ago in New Jersey). Loans had to be taken out to repair the home before sale. It is now under contract. After paying of… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Purchased real estate in 2007 with sister with the intent of
Purchased real estate in 2007 with sister with the intent of fixing up the house and then reselling. Various expenditures during 2007 and 2008 for items such as insurance, utilities, and taxes in addi… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I recently inherited a house jointly with a sibling. We sold
I recently inherited a house jointly with a sibling. We sold the property and another CPA tells me that I can use all the repairs/spruce up costs incurred in the 6 months we owned the property as "sel… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
My grandparents set up a trust, before they died. My fathers
My grandparents set up a trust, before they died. My father's portion passed to me, since he died prior to their deaths. The property...I inherited had been in my family, since the early 1800's. I sol… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
What is our position regarding capital gains tax if we rent
What is our position regarding capital gains tax if we rent a property that my partner has owned previously since 1970, have tried to sell it prior to getting married unsuccessfully. If we rent the pr… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Capital asset sale or Second Home Sale Or Inheritance How
Capital asset sale or Second Home Sale? Or Inheritance? How is the cost basis determined when a parent's house is sold (08/29/2008). When parent originally purchased the home, it was for around $15000… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Our house was previously on the market to be sold. We ...
Our house was previously on the market to be sold. We have recently decided to make it a rental. We repainted the interior and recarpeted prior to putting it on the market for sale. Can we now claim t… read more
WebTaxMan
WebTaxMan
Tax Accountant
Bachelor's Degree
576 satisfied customers
When selling a house and land, (said house was transferred ...
When selling a house and land, (said house was transferred from a mother to her son) The house has remained empty since time of transfer,(four years ago)House now being sold for less than assessed val… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
is there still a federal and california inheritance tax
Is there still a Federal and California Inheritance Tax? If so, what would it be for $3,500,000 and what is the exemption?… read more
Christopher Phelps
Christopher Phelps
Sole Practitioner
Master Degree
1,180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x